The Meaning Behind Value Stocks
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Below is a list of notable value stocks in the basic materials sector:
- Olin (NYSE:OLN) - P/E: 7.49
- Jewett-Cameron Trading (NASDAQ:JCTCF) - P/E: 8.45
- Univar Solns (NYSE:UNVR) - P/E: 9.52
- Nucor (NYSE:NUE) - P/E: 4.75
- Steel Dynamics (NASDAQ:STLD) - P/E: 4.42
Olin's earnings per share for Q1 sits at $2.48, whereas in Q4, they were at 2.41. Its most recent dividend yield is at 1.54%, which has decreased by 0.08% from 1.62% in the previous quarter.
Jewett-Cameron Trading's earnings per share for Q2 sits at $0.08, whereas in Q1, they were at -0.11. Most recently, Univar Solns reported earnings per share at $1.07, whereas in Q4 earnings per share sat at $0.6. This quarter, Nucor experienced a decrease in earnings per share, which was $7.97 in Q4 and is now $7.67. Most recently, the company reported a dividend yield of 1.63%, which has decreased by 0.28% from last quarter's yield of 1.91%.
This quarter, Steel Dynamics experienced an increase in earnings per share, which was $5.78 in Q4 and is now $6.02. Most recently, the company reported a dividend yield of 1.67%, which has decreased by 0.3% from last quarter's yield of 1.97%.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.